by Raghu Gullapani, SmartStops.net contributing editor
AAPL GOOG IBM AMZN
Over eight months the market has steadily climbed up. This climb has been led by the technology sector. Four explosive companies have led the charge.
Apple (AAPL) has led the charge but of late, the charge has stalled. This slowdown in forward momentum is reminiscent of price action last summer. From a technical perspective, the stock has been forming a bull flag and has been holding above its 55 & 210 ema. I would be hesitant to invest more than a feeler at this point until it more clearly resolves to the upside and starts to break above resistance at $360. SmartStops.net indicates the short-term stop is $341.06 and the long-term stop is $339.49
Google (GOOG) has been the laggard in this group for some time now. Lower than expected earnings and the market’s disdain for new CEO Larry Page have led it down. And while it may be tempting to buy on recent news, the technicals don’t bear it out. The stock is trailing the 55 and 210 ema. Smartstop.net projects the short-term stop is $527.77 and the long-term stop is $525.04
IBM (IBM) has shown relative strength, leading the 55 and 210 ema. After a brief pullback the stock looks like it may make new highs. Smartstops.net has the short-term stop at $165.73 and the long-term stop at $158.75
Amazon (AMZN) has been the recent leader in this group after nearly bouncing off it 210 ema. The stock is showing a lot of relative strength and looks to continue to make new highs. Smartstops.net has the short-term stop at $187.85 and the long-term stop at 168.24
The four horsemen were leading indicators of doom. Keep an eye on leaders to protect yourself from volatile markets. Market leaders are known to drop 72% from their peak per Investor’s Business Daily.